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Thursday, December 2, 2021

US economy. Inflation at its highest in 30 years

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The US inflation data surprised economists, writes Reuters. Inflation in October reached the level – 6.2 percent. This is the highest figure since December 1990. According to the news agency, disruptions in global supply chains will keep inflation high in 2022 as well.

Inflation rose by 0.9 percent in October. mdm, after an increase of 0.4 percent. mdm in September, the Department of Labor reported on Wednesday. On an annual basis, CPI inflation reached the level of 6.2%. This is the largest year-on-year increase since November 1990. In September, prices increased by 5.4 percent. yy.

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US economy. Inflation in Fed’s forecasts

Although the Fed last week reaffirmed its forecast that the current high inflation “should be temporary,” most economists are skeptical of such declarations. Analysts also note that wages are rising sharply and that companies will continue to be willing to offer higher wages by competing for employees.

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“The supply disruptions and a recovery in the services market are adding to serious concerns that higher-than-expected inflation will last longer than the Fed believes,” said Sam Bullard, senior economist at Wells Fargo.

Inflation is mainly driven by rising fuel prices. The more expensive crude oil has a direct bearing on US gasoline prices, which are at their highest level in seven years.

What became the most expensive in the USA?

– Diesel fuel was nearly 60% more expensive than last year.

– Gasoline prices went up by almost 50%.

– Natural gas prices have increased by more than 28%.

– Electricity increased by 11.2%.

– New cars were 9.8% more expensive in October than a year ago.

Inflation in the US. Economists’ comments

Polish economists also commented on the latest data from the US economy.

“Transitional” inflation in the US is already 6.2 percent. Recently it grew so fast in the 70s “- wrote Przemysław Kwiecień, chief economist at XTB, on Twitter.

“CPI inflation in the US in October increased to 6.2% y / y (from 5.4% in September, cons. 5.8%). Core inflation increased to 4.6% from 4.0% a month earlier. These were the highest levels since December 1990 and July 1991, respectively. ” – comments from PKO Research analysts.

Main photo source: Ryan DeBerardinis / Shutterstock.com



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